TRADE IN UNEMPLOYMENT

Celine Carrere, Marco Fugazza (), Marcelo Olarreaga and Frederic Robert-Nicoud

No 64, UNCTAD Blue Series Papers from United Nations Conference on Trade and Development

Abstract: Insights from a novel Trade-and-Employment theoretical framework are used to assess the relationship between openness to trade and unemployment. The impact of trade on unemployment depends on the covariance between comparative advantage and sector level labour market frictions. If the covariance is positive then trade liberalization may lead to an increase in unemployment, whereas if the correlation is negative then unemployment falls as the economy opens up to international trade. This prediction is empirically confirmed in a panel of 97 countries during the period 1995-2009.

Date: 2014
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (16)

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Related works:
Working Paper: Trade in Unemployment (2014)
Working Paper: Trade in Unemployment (2014)
Working Paper: Trade in Unemployment (2014)
Working Paper: Trade in Unemployment (2014)
Working Paper: Trade in Unemployment (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:unc:blupap:64

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